The Loot India Pvt. Ltd, the Mumbai-based multi-brand discount chain, has announced the official launch of The Loot store in Bengaluru. The company has set its target to clock in a turnover of Rs 120 crore by March 2009, and plans to have 100 stores operational across the country. It also expects to reach a target of around 200 stores by March 2010.
Speaking to Indiaretailing, Jay Gupta, MD, The Loot, informed: “Last year the turnover was Rs 25 crore. Meanwhile, we expect to post a turnover of Rs 60 crore for the year ending March 2008, and about Rs 120 crore by the end of the next financial year.”
The Loot currently has 30 outlets in four formats across the country: small (1,000-2,000 square feet), medium (2,000-4,000 square feet), large (4,000-8,000 square feet), and extra large (8000+ square feet). Immediate plans include opening another 30 stores in the next four months, to eventually take the number to 100 by March 2009. The Loot stocks close to 60 local and global brands at its stores, and offers 25 per cent to 60 per cent discount throughout the year.
Elaborating upon The Loot’s successful modus operandi, Gupta explained, “We are among the pioneers in organising with professional management what was hitherto a disorganised surplus market. Unlike other retailers, we buy the original merchandise directly from the brands for retailing through our stores. The brands that we retail are aspirational, and consumers are most delighted to buy these at a price that is most affordable. We sell neither fakes nor seconds. The Loot is appropriately and uniquely positioned to meet this proposition of ‘quality at an affordable price’.”
Gupta claimed that the store in Mysore, opened recently, is doing remarkably well. Meanwhile, the company will open two more stores in Bengaluru and one each in Mangalore, Hubli and Belgaum in Karnataka. The new store located in Marathahalli (regarded as the country’s largest fashion discount street) is expected to face tough competition from several branded and non-branded players.
The value retail chain recently set up a warehouse that can stock up to 10 lakh pieces and meet the demand of 400 stores. Gupta said that the company is also in talks with leading designers of the country to sell their surplus stock through The Loot stores, in addition to designing special lines for the mass market. The retail chain currently has two private labels for accessories, Eccentric and Bus Stop.
Meanwhile, The Loot is also considering offloading 25 per cent stake to private equity investors. Gupta said that the move would be a pre-IPO dilution and “will not be less than Rs 100 crore.”
The Loot had opened its first store in September 2004.
– Vishnu Rageev R, Bengaluru Bureau